We explain what a trader is and the history of the emergence of trade: commercial law, rights, and obligations of the merchant.

What is Merchant

A trader is a person who engages in economic activity, negotiation, trade, or vocation to negotiate the acquisition and sale of various commodities. Traders are those who acquire items at a given price and then resale them for a more fantastic price, making a profit on the difference.

The thing may have undergone a change that adds value before being sold or that it’s sold just as it was acquired, in which case the function is confined to matching the client’s products. that they not have gotten otherwise

History of Trade

The rise of coins ended the need for barter.

The history of trade is not separate from the general economic history of the world (and primarily its economic systems) and began when ancient civilizations used barter to exchange possessions.

The need to continue exchanging goods even in asymmetric situations determined the emergence of currencies. It was no longer necessary for both parties to have something to give to receive a good from the other since the money became the pattern that governs these transactions.

On the other hand, transport has evolved and made it possible to trade from one place to another, even over extended distances. Today, trade is average, not only internally but also between countries.

Many factors have been determining the characteristics of trade and merchants in different parts of the world (regulation or deregulation by the State, new technologies, banking, digitization of processes, etc.). However, the existence of trade as an exchange of products for money is still needed, and for now, the merchant is an important figure in this.

More About Merchant

Trading is regulated, which gives the trader several rights.

Commercial law is the branch dedicated to studying the legal framework of commerce and considers that merchants are only the people who habitually (and not occasionally) deal with activities that the law finds commercial. So, naturally, the countries’ Commercial Codes establish the particularities, but in many cases, the assessments coincide.

Commercial acts, in our country, are the lawful legal ones to constitute or modify commercial obligations between parties. These acts must be carried out on behalf of a person, and intermediaries (such as employees, carriers, or managers) do not acquire the category of merchant.

For these transactions, people must have the capacity not being able to be minors or disabled by dementia or particular illnesses, as well as people who occupy a series of positions that consider incompatible with exercising commerce (magistrates, judges, or employed in raising and managing public funds, for example).

Trading regulate, which gives the trader several rights and several obligations. The former is guaranteed only based on compliance with the latter. It includes, among them, the use of accounting books as a means of proof, non-discrimination by regulatory entities, or the ability to request judicial agreements with eventual creditors.

The Commercial Obligations in Argentina are the following:

Registration in the Public Registry of Commerce. So that anyone can access the background of the merchant and the query of solvency, address, and responsibility.

Conservation of all accounting books. So that individual operations can legally identify, with the due detail of figures and states.

Preservation of correspondence. That is related to the merchant’s business, not being able to excuse himself judicially for having lost or discarded it.

What is a Merchant Considering?

A Merchant is an individual who executes commercial operations corresponding to the purchase and sale of goods and services. Merchants constantly participate in the markets, offering the products these spaces supply.

Considering the above, it can say that a merchant is a person who actively participates in the market of goods and services, previously acquiring their products from industries or producers for their subsequent and respective commercialization. This subject carries out these activities to obtain a specific monetary benefit.

Merchants contribute essential elements to the market for goods and services and the population in general by intermediating and actively participating in the distribution of products. The work carried out by these facilitates obtaining them by consumers and, in turn, optimize the job of satisfying population’s needs, contributing to the economic, social, and cultural fields.

Merchant Features

participate in the market.

carry out sales and purchase activities.

carry out their operations to obtain a profit, usually monetary.

contribute significantly to the economy of the countries.

optimize the processes of the commercialization of goods and services.

They get their products from suppliers or industries that make them.

They are a fundamental pillar in the revitalization of the markets.

Some commercial or commercial entity generally governs them.

Types of Merchants

Individual merchant: that individual who carries out commercial activities of buying and selling goods and services individually; that is, his legal obligations assume entirely and separately. This type of trader may have subordinates or operate with the help of a third party; however, if they do not legally form a partnership with someone, they consider a sole trader.

A social merchant is a commercial company that executes retail purchasing and selling goods and services. Its legal obligations assume by the group of people who constitute the company. The members of this company take their profits and losses. Therefore, they work together to achieve maximum benefits in their business.

Dependent merchant: one who executes commercial activities of buying and selling goods and services in a company; he link to an organization. Therefore, he is a worker who performs his work as a merchant.

Independent trader: one who executes commercial activities of buying and selling goods and services independently; that is, he does not link to an organization, and his actions carry out on his own, without receiving orders from a superior.

Here are some examples of Merchants:

A company in charge of distributing textile products.

An individual dedicated to acquiring food goods from local producers for later sale in foreign markets.

An individual in charge of executing commercial activities to sell handicrafts in a square.

The employee of a company that distributes beauty products in a shopping center.

A company in charge of distributing technological parts in hospitals.

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